Which of the Following Is a Limitation of the Use

question 78

Multiple Choice

Which of the following is a limitation of the use of learning curves?

• A) Change in personnel, design, or procedure leave the learning curve unchanged.
• B) Learning curves are applicable to services as well as to manufacturing.
• C) The culture of the workplace may alter the learning curve.
• D) Direct labour and indirect labour follow the same learning curves.
• E) Applications of learning curves are of tactical, not strategic, importance.

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Definitions:

Operating Income

EBIT, or earnings before interest and taxes, denotes the income a business generates from its fundamental activities.

Margin Of Safety

The difference between actual sales and break-even sales, providing a cushion against which performance can decline before a business incurs a loss.

Contribution Margin

Contribution Margin is the amount by which sales revenue exceeds variable costs of production, indicating how much revenue contributes to fixed costs and profit.

Break-even Point

The level of sales at which total revenues equal total costs, resulting in no profit or loss.